Subject: File No. S7-19-07
From: G LaNeige

July 20, 2008

Dear sirs,

I have earlier expressed my opinion on the practice of NSS. In contemplating that submission, I wish to offer something of a potential solution.

The DTCC has in the past protected FTD information stating that market instability may result or that trading strategies may be improperly disclosed. In other words, that a short squeeze could occur that would hurt the criminals behind such trades. Systemic instability could be the result as the naked shorts may not be able to buy back without going bankrupt and leaving a lot of counterfeit shares out there abandoned.

To me the solution is simpler than the DTCC and SEC make it out to be. Just look at the market cap of any company as the recent average share price multiplied by the total share count ( real plus counterfeit shares ) and divide by the real share count to arrive at a DECREED buyback price. A short squeeze could be prevented and shareholders made partially whole in this manner.

I also feel that the DTCC should be involved in the ex-clearing process and expecially in the derivative markets.

Mr. Paulson et al have an opportunity to reintroduce some integrity into the markets by eliminating all naked selling in every market as a baby step into meaningful reforms that the market needs badly.

I write this because the world is at a crossroad, not least of which is a crisis of confidence in markets that appear corrupt - at least to us small fish. Even the big fish will starve if they keep killing all the small ones.

With my regards.